ABOUT THE PROGRAM

The NARUC Utility Rate School is held twice a year, in the fall (Eastern - Clearwater Beach, FL) and the spring (Western - San Diego, CA). The basics of utility ratemaking are presented by program faculty members from state public utility commissions, utility companies, and the legal, consulting, and academic communities. Rate School emphasizes the fundamentals of the utility rate setting process, including how to establish revenue requirements and the basic concepts of rate design. Participants work in teams to learn the fundamentals of establishing revenue requirements and setting rates by working through a hypothetical rate case for a water utility. The program also provides insight into current issues affecting the water industry and other public utilities.

By featuring a carefully crafted mock rate case and a team approach, Rate School provides a unique hands-on educational experience. Rate School is relevant to anyone interested and involved in utility ratemaking. Specialists across all sectors – water, natural gas, and electricity – have actively participated and benefited from the School and are encouraged to attend. Although the program centers on a mock water rate case, the emphasis is actually on the core principles, concepts, and tools of rate-base/rate-of-return regulation and reatemaking—particularly accounting, finance, and economic analysis. Water and energy demonstrate technical distinctions, they have more in common than not when it comes to ratemaking. What are revenue requirements? What is reported on a balance sheet and income statement? What is included in the ratebase? How is the rate of return determined? Balance sheets, income statements, taxes, depreciation, capital structure, cost of capital, cost allocation, and rate design are common considerations for all regulated utilities. Rate School also includes a special session on energy issues

The NARUC Utility Rate School has been sponsored by the Committee on Water of the National Association of Regulatory Utility Commissioners (NARUC) since 1972. The Institute of Public Utilities at Michigan State University provides administrative support to the School. Check out photos of last year here!

TOPICS COVERED

Regulatory, Industry, and Consumer Perspectives Economic Basis for Regulation Legal Basis for Regulation Prefiling Briefing for the Mock Rate Case Basics of Utility Rate Setting Choosing the Test Year Developing the Rate Base Getting Started on the Mock Rate Case Balance Sheets and Income Statements

Expenses, Adjustments, and Depreciation Income Taxes Corporate Finance and Cost of Capital Ratemaking Issues for Energy Utilities Economics of Rate Design Cost-Allocation Methods Rate-Design Methods Summation Panel for the Mock Rate Case

CLE/CPE CREDIT

Attendees will receive a certificate of attendance for the program. Continuing education credits can also be arranged attorneys (CLE), accountants (CPE), and other professionals. The Institute of Public Utilities is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN 37210-2417. Website: www.nasba.org. IPU-MSU will apply for accreditation or registration of the program. Application does not guarantee approval.

TESTIMONIALS

Don't just take our word for it, hear what past Rate School attendees think about the program.

• "I had the opportunity to attend this week-long course and learned many aspects of energy/utility ratemaking, including the mechanics of the ratemaking process, as well as principles of ratemaking law, policy, economics, and accounting. The faculty is extremely knowledgeable, helpful, and presented diverse viewpoints."
• "We found the utility rate school to be an intense and a thorough immersion into the regulatory process. The comprehensiveness of the program provided us with a depth of knowledge that we will be able to integrate into our everyday job duties. The most impressive part of the program was the faculty, particularly their ability to explain the most complex topics in understandable terms. We appreciate the time they all took from their schedules to share their tremendous knowledge with us."
• "As a new regulator, educational training is critical. Rate School provides an outstanding resource. By assembling a select yet diverse group of experts from academics, the regulatory community, and industry, the IPU-NARUC programs provide cutting edge presentations while teaching the basic 'need to know' fundamentals of utility regulation.
• "I felt that the school was a tremendous learning experience for me, especially as a new Commissioner. The interaction with staff and other participants was extremely beneficial … a totally worthwhile experience."
• “The Rate School is not just about learning the mechanics of ratemaking, but, more importantly, gives attendees an opportunity to understand the perspectives of the various players involved in setting utility rates. The effective mix of presentations by expert speakers and the use of group exercises resulted in an outstanding learning experience.”
• “All presentations were insightful, informative, and most importantly engaging.”
• “Program faculty was a great help to my group.”
• “Overall this was a very good experience and the knowledge gained will be useful in my day to day activities. I walked away with a better understanding of the water utility industry.”
• “I really learned a lot this week. I think the Rate School is an incredible tool for training commission staff. Thank you for all your hard work.”
• “The group work is invaluable. It promotes hands-on discussion on the issues and benefits those who may be lost on some of the accounting concepts.”